Australian logistics property group LOGOS is set to acquire a 60% stake in Global Vision Logistics, an associated company of Malaysian realty company Aspen, for RM 296,670,306 ($73 million).
In an official release, Aspen, which owns 30% of GVL, said LOGOS will subscribe to 3,750,000 shares in GVL at an issue price of RM79.11 apiece.
The subscription consideration will be used by GVL for debt restructuring purposes.
The funds are expected to enhance the Group’s cash flow position and will be used for the working capital of the Group’s existing property development projects and investment in the Group’s subsidiary Aspen Glove Sdn. Bhd.
In 2017, GVL acquired 3 land parcels collectively measuring approximately 71 acres situated in Section 16, Shah Alam, Selangor for the development of an integrated logistics and warehousing facility.
The company is expected to leverage LOGOS’ logistics expertise, particularly in Asia, where its portfolio comprises 100 logistics estates across nine countries with an AUM of approximately $10.2 billion.
“The logistics and warehousing industry is one of the fastest-growing industries due to the rise in demand from the e-commerce business. With LOGOS’ experience and track record, we are confident of developing a world-class facility and to attract a good tenant mix,” said Dato’ M. Murly, the Group’s President and Chief Executive Officer.
GVL will act as the special purpose vehicle to undertake the project that will be carried out in phases. The total development area of the project is expected to be 745,000sqm and the gross leaseable area for the five warehouse blocks will be approximately 505,000 sqm.
Upon its completion, the facility is expected to be one of the largest one-stop logistics solutions provider in Malaysia.
For LOGOS, its venture into the Malaysian market follows earlier deals it sealed in neighboring Indonesia and Vietnam over the last few months.
In August 2020, it announced a joint venture with a global institutional investor to develop logistics facilities in the country, with an expected portfolio size of around $350 million in the initial phase. This was followed, earlier this month, by a joint venture with Canada Pension Plan Investment Board (CPP Investments) to develop logistics facilities in Greater Jakarta.